Volkswagen steps up its renewable energy efforts and adds wind energy to its portfolio

Mexico Secretary of Energy Pedro Joaquin Coldwell, Governor of Zacatecas Miguel Alonso Reyes, Mayor of Zacatecas Arnoldo Rodriguez Reyes, and executives from Mexico Power Group and Volkswagen Mexico were in attendance for yesterday’s announcement.

The wind power will be utilized in Volkswagen Mexico’s plant in Puebla, which is the largest automobile manufacturing plant in North America producing approximately 2,500 vehicles a day, and in its engine manufacturing plant in Silao, Guanajuato. Together, both plants employ approximately more than 18,000 workers. Under the agreement, Volkswagen Mexico plants will save more than 45 million pesos (3,6 million dollars) in electricity costs per year.

The agreement between Mexico Power Group and Volkswagen Mexico is an excellent example of the growth of the wind industry in Mexico and the commitment of both companies to sustainability and the environment in Mexico.

“Mexico Power Group is excited about providing clean, affordable energy to our new partner, Volkswagen Mexico and to contribute to the development in the Zacatecas region generating economic benefits and employment opportunities,” said Gerald Monkhouse, Chairman of Mexico Power Group.

During his speech yesterday, Mr. Andreas Hinrichs, Chairman of the Board of Volkswagen Mexico, emphasized that this agreement confirms Volkswagen’s environmental commitment, which is reflected not only in the development and manufacturing of more efficient automobiles and engines but in implementing manufacturing processes that are more environmentally friendly.

The executive said, “[w]ith this agreement Volkswagen Mexico prevents an annual emission of approximately 140 thousand tons of CO² into the atmosphere. This initiative is part of Volkswagen’s Think Blue strategy, which aims to reduce the environmental mark of all Volkswagen plants around the world.”

It is expected that the La Bufa wind farm development will be completed at the end of 2014 with a total investment of 4.500 million pesos (360 million dollars). The project will demonstrate the confidence of foreign investors in Mexico and it will help to create over 300 local jobs during construction and 600 indirect jobs in the region of Zacatecas.

“The economic and environmental benefits to our community will be enormous,” said Miguel Alonso Reyes, Governor of the State of Zacatecas. “This is the kind of project we need for our people, our workers, our families and our future. We are ready to work hand in hand with Mexico Power Group and Volkswagen Mexico on this important project.”

During his speech, Mr. Pedro Joaquín Coldwell, Secretary of Energy of the Mexican Federal Government commented: “It is an honor to attend the signing of this important agreement that will expand the installed capacity of wind power in the country and testifies to the beginning of the largest wind project in Mexico that supplies a single delivery point. I am grateful to Mexico Power Group and Volkswagen Mexico, for inviting me to participate in this event, which takes on a particular importance when a reform that seeks to strengthen the energy sector as a whole is in discussion.”

“This new era requires a new mindset, a renewed relationship of the Mexican people with energy, especially as we pass from the domain of fossil fuels to those coming from renewable sources, which are friendlier to nature. In this regard, we will pursue energy reform so that it will be easier for laudable projects such as this to gain access to the transmission network, so we can democratize power generation, and encourage the installation of more plants that would take advantage of clean energy, particularly renewables.”

“Our nation has great potential in renewable energy, particularly wind power, geothermal, hydro and mini-hydroelectric, biomass and solar, and we have a great opportunity to take advantage of these resources, as is done in other countries, to take advantage of the country’s energy resources for the benefit of the environment and competitiveness in Mexico so that other companies like Volkswagen Mexico will now achieve significant savings in electricity costs,” concluded the Secretary of Energy.

The automaker and Mexico Power Group signed an agreement for the yearly supply of 290 GWh of renewable energy, which, according to Volkswagen, will supply 60% of power requirements at the factories beginning in September 2014.

Volkswagen notes that the initiative is part of its “Think Blue” factory strategy, which calls for a 25% reduction of its global environmental footprint by 2018. In addition to energy savings and the reduction of the CO2 generated in its production processes, the company intends to reduce water consumption, emissions and industrial wastes.